A potential reform of Germany’s statutory care insurance system is under discussion within the federal government, driven by a projected funding gap of approximately two billion euros by 2026. One measure being considered, according to reports from coalition politicians cited by “Bild am Sonntag” involves the elimination of care level 1.
The possibility of removing care level 1 has reportedly surfaced previously, even during coalition negotiations between the Christian Democratic Union (CDU) and Social Democratic Party (SPD). As of the end of 2024, roughly 863,000 individuals were classified within care level 1, receiving a monthly relief allowance of 131 euros and eligibility for subsidies for home modifications and emergency alert systems.
A calculation by the RWI Leibniz Institute for Economic Research estimates that removing care level 1 could yield annual savings of approximately 1.8 billion euros.
The German Federal Ministry of Health, responding to inquiries, emphasized the ongoing work of the Federal-State Working Group on Care Reform. A spokesperson stated that the group is comprehensively examining the revenue and expenditure of the social care insurance system, including the structure and scope of care levels. Premature conclusions cannot be drawn before the group completes its deliberations.
A preliminary report from the working group is expected by mid-October.
The deputy parliamentary group leader of the CDU, Sepp Müller, told “Bild am Sonntag” that reducing ancillary wage costs is paramount to securing jobs and prosperity. He advocated for a thorough review of all available measures to achieve this objective.